April 2021

Exempt Vs. Non-Exempt Employees | What's the Difference?

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June 19, 2024

The exempt vs. non-exempt employee classification is a critical consideration for employers because it allows you to know which compensation and overtime rules apply to them.


Failure to properly adhere to the compensation and overtime standards of the exempt vs. non-exempt guidelines may attract severe penalties to your business. Yikes! 

In this aricle, we will cover exempt vs. non-exempt definitions, Canadian and American laws surrounding the topic, and how to properly classify your employees. 


Exempt vs. non-exempt, what is the difference?

The difference between an exempt vs. non-exempt employee boils down to the legal agreement you have with that employee and if they are exempt or non-exempt from the legal requirement of receiving overtime pay.   An exempt employee is not eligible for overtime, and a non-exempt employee can receive overtime pay. 


What is an exempt employee definition?

Exempt employees are workers who are not entitled to overtime pay. Employers of exempt employees are not legally bound to pay them for extra work hours. The federal standard for work hours in the United States is 40 hours per workweek.


According to the Federal Labor Standard Acts (FLSA), federal law requires that employers in the United States pay employees at least the federal minimum wage. The minimum wage as stated by the United States Department of Labor is $7.25 per hour (Aug, 2022). Bear in mind that some states such as California may have other rates according to their different state laws.

Exempt employees are paid on a salary basis and not per hour. Unlike non-exempt employees, employers may decide whether to pay exempt employees for any extra work outside the official 40 working hours per week. As a business owner, this allows you flexibility in your payment and employee benefits policies.

As an employer, you may implement employee benefits policies to suffice for overtime pay. This may help improve your employee loyalty as it tends to boost their working conditions. Also, if you consistently require any of your employees to work overtime, they may negotiate for possible overtime benefits. 


There are certain conditions an employee must fulfill before you can classify them as an exempt employee. Some of these criteria include:

Group of non-exempt employees hanging out


Exempt employee classifications include: 

  • The employee receives their payment on a salary basis
  • The employee receives at least $684 per week.
  • Up to 10% of this standard salary level may consist of non-discretionary bonuses and other incentives
  • Most exempt employees occupy executive, administrative, and professional positions in their companies.
  • They can also be outside sales employees or computer personnel. 


What is a non-exempt employee definition?

Non-exempt means an employee is not exempted from overtime pay. Employees in this category typically receive hourly wages for their work and are entitled to overtime pay. The overtime pay must be at one-and-a-half times the normal wage rate.

Non -exempt employee classifications include: 

  • Non-exempt employees are usually paid at least the federal minimum wage amount.
  • Some states may establish different minimum wage laws (where an employee is under both federal and state minimum wage laws).
  • Typically receive hourly wages.
  • Typically shift workers, staff, or contractors.


What are the differences between an exempt employee in Canada VS In the USA?

Unlike the United States, Canada doesn't distinguish between exempt and non-exempt employees. This means that you can receive overtime pay in most instances despite how you get paid (salaried vs. hourly) or your job title.


Canada's exemptions to this rule depend on your employment agreement or description of job duties. Below are some groups that are likely to be exempt from overtime pay in Canada:


  • Technology specialists 
  • Salespeople 
  • Managers 
  • Those fulfilling duties related to the fields above (managerial duties, tech specialists, etc.)
  • Healthcare students (dentistry, hospitals, etc.) 


The "who" of getting exemptions falls under the Employment Standards Act (ESA). Much like the United States, the standard overtime rate for those who qualify is 1.5 times more when Canadians exceed 44 hours per week. The difference being there are fewer situations in Canada where a person might not qualify for overtime pay.  


What if your job doesn't fall under exempt or non-exempt? 

If your job comprises multiple duties that include exempt and non-exempt activities, Canada requires employers to create a clause for the regular rate. These jobs will be defined as having "mixed duties." 


For example, if 75% of your duties are handling customers and the rest are managerial, employees can qualify for overtime. However, if the managerial duties make up most of your work, the 50 percent rule applies, meaning you might not receive overtime pay.  


Some employees can also establish an averaging agreement, meaning they measure the time that includes two weeks (or more). 


In this way, if you work 50 hours one week and 30 hours the next week, you don't qualify for overtime pay because the two-week period doesn't exceed 80 hours. 


Employers also have the option to have a paid time off allowance instead. In this way, they receive that time off at a rate of 1.5 times each overtime hour worked.

employees laughing, are they exempt?


How do you determine the salary of an exempt vs non-exempt employee?

As a business owner, you must understand how to calculate an exempt vs. non-exempt employee's salary. This will ensure that your employee payment complies with the appropriate legal standards. You can integrate a  payroll solution into your business to help you manage and automate your payroll processes.


For a better understanding, let us take for instance an employee who worked for 56 hours in the third week of February 2021.

We assume that the employee's regular pay rate is $20 per hour.

The standard work-week hours are 40 hours per week. So, this employee worked 16 hours overtime for the week (56 - 40). 

The salary is:

Regular pay = 40 x $20 = $800

Overtime pay = $20 x 1.5 x 16 = $480

Total pay: Regular Pay + Overtime pay: $800 + $480 = $1280

For exempt employees, only workers who earn below $684 per week may get paid for overtime. The calculation for overtime pay follows the same procedure as already illustrated above.


However, note that different states may have different overtime pay, minimum wage, and working hours rules. Endeavor to find out what applies in your state to minimize the risk of non-compliance. For instance, you can find out how to calculate overtime in California and see how it differs from the federal standards.


What are the benefits of working with an exempt vs non-exempt employee?

There are pros and cons to both. You don't have to pay exempt employees overtime, but you do have to pay them for stat holidays and benefits. For non-exempt, you do have to pay them overtime, and holiday pay - but you have more flexibility in the offerings you provide.


Benefits of working with an exempt employee:

  • You are not required to pay overtime. 
  • You do not need to comply with the Federal Labor Standards Act. Since exempt employees are not subject to the act, you are not prone to any possible consequences for non-compliance.
  • You can boost employee loyalty by offering them overtime benefits. The key part is that you are totally in charge of the terms of the benefits.


Benefits of working with a non-exempt employee:

  • Even though you pay for overtime, you can rest assured that you are paying for only the hours worked.
  • Overtime pay can motivate employees to do more. You may not even need an extra overtime benefit, which may eventually cost much more.
smiling employee


What are the downsides to working with an exempt vs non-exempt employee?

There are usually two sides to a coin. For a better decision, you need to weigh the pros and the cons to determine which option is more profitable.


Downsides of working with an exempt employee:

  • Overtime pay can motivate employees, especially if your company regularly requires overtime activities.
  • Most exempt employees are skilled and experienced and, as a result, are more expensive to hire and sustain.
  • They get paid stat holidays.


Downsides of working with a non-exempt employee:

  • You must pay for overtime. If your business requires frequent overtime, this may become a financial burden.
  • Failure to adhere to FLSA standards may attract serious penalties.


What else do I need to know?

It is important to note that the overtime pay exemptions provided by the FLSA do not apply to manual labor workers or "blue-collar" jobs. According to the Overtime Fact Sheet by the FLSA, only "white-collar" workers may be exempted from the overlay rules.

Also, the exemptions do not apply to police officers, detectives, inspectors, investigators, firefighters, paramedics, or other workers listed in the Fact Sheet.

To minimize the risk of non-compliance consequences, you may need to engage in professional employee management tools. You will be able to automate some processes and monitor employee activities better for accurate tracking. For managing employees with variable hourly rates - Push is your best friend.


We hope this helped cover all things exempt vs. non-exempt employee - happy managing! 

Want more tips on keeping great people? Check out our free retention checklists template!

free retention checklists


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The food and hospitality industry is entering a transformative era in 2024 — driven by consumer demand for transparency, health, environmental responsibility, and a touch of culinary innovation. Diners are more informed, adventurous, and values-driven than ever before. Whether it’s a craving for Korean-BBQ tacos, gut-friendly mocktails, or carbon-labeled menus, today’s customers are embracing trends that combine personal wellness with global consciousness.

For restaurant owners and foodservice managers, keeping pace with the latest food trends is more than a matter of creativity — it’s a necessity for profitability and long-term success. This guide explores the top food trends for 2024, from plant-based innovations to tech-forward sustainability practices, and how operators can successfully integrate them into their businesses.

Let’s dig into what’s trending, what your customers want, and how your restaurant can stay ahead.

What Are the Top Food Trends for 2024?

Here’s a snapshot of the most impactful food trends shaping menus and operations in 2024:

  • Plant-based innovations – Beyond tofu: think cultivated meats, mushroom mycelium, and chickpea-based seafood substitutes.
  • Climate-conscious menus – Locally sourced, low-waste, and forward-thinking menus aligned with environmental responsibility.
  • Functional wellness foods – Ingredients that support mood, energy, and immunity are being infused into dishes and drinks.
  • Tech-driven dining experiences – AI tools, robotics, and smart systems are elevating back-of-house efficiency and customer-facing dining.
  • Global flavor fusions – Mashups of regional cuisines (like Indian-Mexican or Korean-South American) offer novelty and richness.

Why Do Restaurant Owners Need to Pay Attention to Food Trends?

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  • Consumer demand is shifting: According to the National Restaurant Association’s 2024 Culinary Forecast, over 70% of diners say they actively seek healthier, more sustainable options when dining out.
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  • Increased brand loyalty: Restaurants that align with customer values — health, ethics, innovation — earn trust, repeat visits, and social shares.
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  • Operational agility: Trend-oriented kitchens are quicker to pivot when supply chains shift, diets evolve, or digital preferences change.
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Which Foods Are Trending This Year Across the U.S.?

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Rise of Plant-Based Food Trends

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  • Cultivated meats: Also known as lab-grown meats, these are becoming mainstream. Brands like UPSIDE Foods and GOOD Meat are breaking into U.S. markets with chicken grown from animal cells in controlled environments.
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  • Mycoproteins & legumes: Derived from fungi or pulses, protein-rich alternatives like tempeh, jackfruit, and lupin are being used creatively in tacos, BBQ ribs, and seafood analogs.
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  • Mainstream adoption: Major chains like Burger King and Chipotle continue expanding plant-forward menus, while independents offer bold meatless dishes with flavor-forward sauces, global spices, and satisfying textures.
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Healthy Food Trends for 2024

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  • Gut health focus: Probiotic-rich dishes (kimchi grilled cheese or sourdough naan wraps) and fermented sides are on the rise.
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  • Lower-sugar desserts: Sweet treats are being reimagined with monk fruit, dates, and other low-glycemic ingredients.
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  • Immunity boosters: Menus highlight ingredients like turmeric, ginger, vitamin C, and zinc through smoothies, teas, and power bowls.
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  • Clean-label commitment: Consumers are studying ingredient lists, preferring dishes with wholesome, recognizable components.
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Functional Foods and Beverages

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  • Nootropic-infused drinks: Beverages powered by L-theanine or functional mushrooms cater to focus and calm.
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  • Adaptogenic add-ons: Herbs like ashwagandha, maca, and rhodiola are finding their way into smoothies, lattes, and sauces.
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  • Wellness cocktails: Mixed drinks sans alcohol — but heavy on health — promote detox and energy, flavored with botanicals and natural extracts like spirulina, matcha, and activated charcoal.
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How Are Sustainable Food Trends Shaping the Industry?

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From Menu to Sourcing: The Push Toward Sustainability

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  • Local and seasonal sourcing: Supporting nearby farms reduces emissions, ensures freshness, and appeals to community-minded consumers.
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  • Zero-waste operations: Chefs are using root-to-stem cooking, fermentation for food preservation, and creative uses for scraps in sauces or stocks.
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  • Eco-conscious packaging: Compostable containers, reusable to-go kits, and edible cutlery are disrupting traditional takeout models.
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Tech and Innovation in Sustainable Dining

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  • Carbon labeling: Climate impact scores on menus help customers make informed dining decisions, much like calorie counts.
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  • AI-driven inventory management: Tools optimize ordering patterns, reducing spoilage and overstock-related waste.
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  • Vertical farming & hydroponic setups: Onsite or bordered supply chains shorten the farm-to-table journey.
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What Is the Most Popular Food Trend Right Now?

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While many trends are gaining traction, one standout in 2024 is the rise of global comfort fusion — particularly dishes that marry traditional comfort food with spicy, umami-rich flavors.

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  • Korean-Mexican cuisine: Think birria bulgogi tacos or kimchi queso.
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  • Indian-South American mashups: Curried empanadas or tandoori arepas are headline grabbers.
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  • TikTok’s viral influence: Trends like \“chili crisp eggs\” or \“pickle sushi\” are being adapted on local menus, proving that social virality turns into real-world demand.
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How Social Media Is Driving Food Trend Adoption

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Role of Social Media in Accelerating Food Fads

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  • Influencer credibility: A single post from a viral chef or creator can spark national interest in a dish.
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  • Hashtag virality: Foods labeled #ButterBoard or #WaterTok evolve into week-long waitlists and menu must-haves.
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  • User-generated content: Diners love documenting quirky, beautiful, or “you’ve-never-seen-this-before” dishes to share online.
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Leveraging Food Trends for Restaurant Marketing

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  • Seasonal menus & pop-ups: Limited-time offerings based on trending foods motivate urgency and trial.
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  • Social callouts: Encourage diners to tag, post, or review your trend-forward menu items.
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  • Reels and behind-the-scenes content: Show viewers where your ingredients come from or how a niche global dish is made.
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Global and Fusion Food Trends to Watch

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  • Japanese-Peruvian (Nikkei) flavors: Featuring citrusy ceviches with umami-rich miso and soy glazes.
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  • West African influences: Dishes using jollof rice, egusi stew, or fonio grain paired with plant-based elements.
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  • Filipino-American blends: Adobo-braised brisket sandwiches or ube milkshakes have mainstream momentum.
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Tips for Implementing 2024 Food Trends in Your Restaurant

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  • Test with limited-time offers (LTOs): Introduce a trending ingredient as a weekly special or seasonal dish to measure interest.
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  • Survey your customers: Use email lists or POS systems to gather input on potential additions.
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  • Train your staff: Equip them with the knowledge and enthusiasm to explain functional or sustainable items.
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  • Work with specialized suppliers: Align with local farmers, health-focused vendors, or zero-waste packaging providers for smoother execution.
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Final Thoughts: Stay Ahead of the Curve with 2024’s Food Trends

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Adapting to food trends in 2024 isn’t about chasing every new idea — it’s about identifying the trends that align with your market, values, and culinary identity. Plant-based options, sustainability, global flavors, and wellness-centric dining aren’t just appealing — they’re economically vital.

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Restaurants that act early — leveraging data, culture, and digital ecosystems — will attract today’s health-conscious, eco-aware diner and become tomorrow’s industry leaders.

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Ready to Lead the Industry with Smarter Menu Strategies?

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2024 promises bold innovations in food — and your restaurant can thrive by embracing the right trends. Whether you’re scaling functional drinks, reducing kitchen waste, or jumping on the next viral fusion dish, the right tools can help you act faster and smarter.

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Subscribe to the Push blog for expert insights on restaurant operations, emerging food trends, and next-gen hospitality technology. Stay ahead — serve success.

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Internal Links

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External Sources

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  • National Restaurant Association 2024 Culinary Forecast
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  • Technomic’s 2024 Foodservice Trends Report
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  • Mintel Functional Food Trends Analysis 2024
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